RATING agency Moody’s downgraded Barbados three notches on Monday.
A widening fiscal deficit, growing debt levels, expected decline in international reserves, and anticipated increase in pressure on the country’s currency peg were cited as reasons for the rating action.
Falling from a rating of Ba3 to B3 meant the country cleared an entire scale used to measure bonds considered to be speculative and subject to high credit risk.
Its credit risk was previously considered to be moderate.
And even though Barbados is still rated three notches above Jamaica (Caa3), the latest downgrade reflects a downward trend which started in 2009 and which accelerated towards the end of 2012, when the country’s sovereign debt lost its investment-grade rating.
Published in the Jamaica Observer
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